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TMI Blog2017 (2) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... provided to M/s GWSSB, in lying down pipelines for supply of drinking water is not leviable to service tax under the said category of Commercial or Industrial Construction Service - appeal allowed - decided in favor of appellant. - ST/79/2008 - A/10326/2017 - Dated:- 30-1-2017 - Dr. D. M. Misra, Hon ble Member (Judicial) And Mr. Ashok K Arya, Hon ble Member (Technical) For the Appellant : Shri Rahul Patel, Chartered Accountant For the Respondent : Shri Sameer Chitkara, Authorised Representative ORDER Per Dr. D. M. Misra Heard both sides. 2. This is an appeal filed against OIO No. OIO-01/SERVICE TAX/2008 dated 13/03/2008 passed by Commissioner (Appeals) of Central Excise, Customs, Surat-I. 3. Briefly stated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Toubro Ltd. vs. Commissioner of Service Tax, Ahmedabad 2011 (22) S.T.R. 459 (Tri.-Ahmd.) for the same service and same period to the same service receiver i.e. M/s GWSSB held that services provided to M/s GWSSB, in lying down pipelines for supply of drinking water is not leviable to service tax under the said category of Commercial or Industrial Construction Service . 5. Per contra, the Ld. AR for the Revenue has submitted that M/s GWSSB besides providing drinking water to remote areas also supplies water to various industrial concerns on commercial basis. Therefore, the services rendered by the appellants in lying down the pipelines satisfy the amended definition of Commercial or Industrial Construction Service w.e.f. 16.06.2005. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commercial or industrial activity. The provision in the act enabling the Board to borrow money or lending money or receiving grant for entering into contract, have been incorporated to serve the purpose for which the Board has been set up. The objective is to execute water supply and sewerage work for the benefit of both rural and urban communities as mentioned by Member Secretary in his letter dt. 14-6-07. A perusal of the Annual Report of the company would show that there is no profit and loss account at all which would be found in any organization, which is classifiable as commercial or industrial establishment. Further, the auditors have clearly observed that the balance sheet and Income-Expenditure account dealt with by this report com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e would mean buying and selling not necessarily for profit according to Revenue. But, the question here is the purpose of buying water by GWSSB was for selling or not. Obviously, the purpose of buying water and bringing it from Narmada Dam was not for selling it, but for supplying it to needy people. In this case, buying and selling is incidental. The purpose is supply of water to the needy citizens of the State. The term used for commerce would mean that only purpose would be buying and selling, which is definitely not the case here. The term used primarily for commerce would mean that primary purpose should be buying and selling and the other purposes also may be served incidentally. In this case, purchase and sale of water are incidental ..... X X X X Extracts X X X X X X X X Extracts X X X X
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